What are PPP-BOT- Model Tender ? | BOT- Annuity Tender , BOT- HAM , BOT- Toll and BOT-TOT tenders

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In this session, we are discussing the PPP-BOT- Tenders release by the client ( Government ) for the various eligible contractors. PPP means Public-Private Partnership ( with the collaboration of Government and Private contractors) to deliver the project for public use. BOT means Build Operate and Transfer ( Contractor has to build the project and operate it for a certain period of time ) then transfer it back to the government.

There are four different types of PPP-BOT – Model Tenders :
1. PPP-BOT-Annuity Model Tender
2. PPP- BOT-HAM Tender
3. PPP-BOT-TOLL Model Tender
4. PPP- BOT-TOT Tender

PPP-BOT-Annuity Tender: In this tender, Government ( client ) grants permission to the final contractor to design, engineering, and execution of the complete project without any payment to the final contractor during the progress of work.
Payment will be made on an Annual basis i.e Annuity model by the client to contractors, Once the project will be completed and it will be open for public use.
For example :
Client : NHAI Contractor : L&T Project Bidding Amount ( Budgeted cost ) = 100 cr
During the Progress of work, the bill will be prepared by the contractor at regular intervals but payment will be paid on an annual basis.
The 100 cr amount ( Actual cost after billing ) will be paid on annual basis in installments
Assume installment period: 5 years
So amount will be paid every year = 20cr amount.
Note: during these 5 years period all operations, maintenance will be under that contractor ( L&T ) who got this project.

PPP-BOT- HAM: HAM stands for Hybrid Annuity Model. In this tender Government ( Client ) grants permission to design, Engineering, and execution of complete with 40% of the payment ( Bill amount ) during the progress of work in 5 installments, Rest 60% payment of bill shall be made on an annual basis ( as in Annuity model ).


PPP-BOT-TOLL: In this tender, Government ( client ) grants permission to the final contractor to design, engineering, and execution of the complete project without any payment to the final contractor during the progress of work and after completion of work.
Payment including contractor profit be abstracted by the contractor through certain numbers of TOLL which are built on Highway, Through TOLL taxes from vehicles contractor will generate their constructing cost including profit within a certain period of time ( i.e 15 years- 30 years ).


PPP-BOT-TOT: TOT stands for TOLL Operate and Transfer. In this type of tender, Government ( client ) releases tender particularly related to Toll operation for a certain fixed period of time under lease amount received by the bidder ( final toll bid winner ).
Generally, the period of toll operation: 15 years – 30 years, once the lease period will be get finished, the Toll shall be returned and transferred back to the government ( client ).


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